Tea, Coffee Insurance

Tea, Coffee Insurance


The Tea Crop Insurance Policy is flexibly designed to answer your needs. It covers loss or damage to your goods while being transported by rail, road, air or by sea, Processing Risk, Packing and storage at Warehouse, Job Workers locations, Processing Units. The policy compensates you for losses suffered and offers complete financial protection during the transit and Storage of your goods

We arrange Insurance solutions that cover
  • Transit of plucked green leaves to tea factory by laborers or by garden vehicle/s.
  • Processing Risk.
  • Packaging & Storage of made tea at tea factory.
  • Transit to various places including Auctions Centers in India/Abroad including FOB or C&F Shipments including the risks of storage.
  • This Policy also covers Consignment Sale & CIF Sale in foreign countries including the risk of Storage.
  • Automatic protection for 15% of the estimated annual crop while stored in the tea estate without additional premium.
  • 15 days grace period is granted to the Assured to allow the buyers to take delivery after the insurable interest passes on to the buyer.
  • Storage Extension at Auction Centres (India or Overseas Countries), Up Country Destinations, Consignment Sales, Port of Shipments in respect of CFR/FOB or CIF Shipments.
  • Tea Stored in excess of 15% under On Garden Clause
  • FOB/CFR Extension
  • Multi Transit Risk
  • Storage extension after Prompt Date
  • Held Back Tea at Tea Estate
  • Extension of Duration Clause under Institute Cargo Clauses
  • War & SRCC as appropriate & any other extensions


Any coffee grower, cultivating Robusta / Arabica variety of coffee in the selected zones of Karnataka, Kerala and Tamilnadu and whose coffee produce / yield is likely to be affected by the rainfall, are eligible to buy the insurance. In the event that, in the geographical location (coffee zone) and during the time period specified in the Schedule to this policy for different options, the Actual Rainfall is deficit / excess compared to the specified trigger level, the benefit payable to the insured shall be a sum specified corresponding to the trigger level, subject to maximum of the Sum Insured specified under various options of the Scheme.

The insurance operates during 1st March to 31st August / 30th November. The periods under different coverage are as follows:

i. Blossom Shower: 1st March to 15th April (Robusta) / 30th April (Arabica)

ii. Backing Shower: 18th day of from the starting of Blossom Showers till 40th day

iii. Monsoon Shower: 1st June / 1st July to 31st August; 1st October to 30th November

The policy compensates the insured, against the likelihood of diminished coffee output / yield resulting from shortfall / excess in the actual rainfall (as the case may be) for different coverage options within a specific geographical location and specified time period, subject to a maximum of the Sum Insured specified in the policy under each of the coverage options.The policy provides the following coverage options:

“Blossom Showers” shall mean the rainfall received between 1st March to 15th April (Robusta) and 1st March to 30th April (Arabica) for the bud to flower (bud enlargement and anthesis). The normal requirement of rainfall is a sum of 25 mm over seven consecutive days.

“Backing Showers”shall mean the rainfall received from 18th day of the starting of Blossom Showers till 40th day to achieve fruit development & retention. The normal requirement of rainfall is a sum of 12 mm over two consecutive days.

“Monsoon Showers”shall mean the rainfall received during 1st July to 31st August for the fruit to grow in size. However, in case of Kerala the period is from 1st June to 31st August; and for the zones in Tamilnadu receiving rainfall during North-East Monsoon, it’s from 1st October to 30th November. The rainfall within normal range is beneficial for early ripening and maturity. The aggregate rainfall beyond a specified limit (distinct for each zone) over any seven consecutive days during the period is likely to adversely affect the coffee yield.